NEW YORK (TheStreet) -- In my first post of the day I cover the 26 components of the PHLX Semiconductor Sector IndexI:SOX that are trading above $10 a share. In this post I profile the four components of the semiconductor index that are trading under $10 a share plus six other semiconductor stocks trading under $10 that have buy ratings. Overall nine of 10 in today's table are rated buy according to www.ValuEngine.com.
The daily chart of the semiconductor index shows overbought momentum with the index above its 21-day, 50-day and 200-day simple moving averages at 479.50, 476.97 and 444.39. This week's value level is 479.94 with monthly and semiannual risky levels at 516.08 and 533.56.
Chart Courtesy of Thomson/Reuters
The overall market remains under a ValuEngine valuation warning with 77.1% of all stocks overvalued 43.9% by 20% or more. The computer and technology sector is one of ten sectors overvalued by more than 20%.
Three of the 10 stocks shown in this table are undervalued with four overvalued by more than 20%. Nine have buy ratings and one has a hold rating. Three are lower in price over the last 12 months with
down 29.1% and
down 49.9%. Among the seven higher over the last 12 months
gained 95.6%. Three are trading below their 200-day SMAs therefore the seven that are above their 200-day SMAs have risk of a reversion to the mean.
Reading the Table
Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.
Last 12-Month Return (%):
Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.
Forecast 1-Year Return:
Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.
Price at which to enter a GTC limit order to buy on weakness. The letters mean; W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual.
A level between a value level and risky level that should be a magnet during the time frame noted.
Price at which to enter a GTC limit order to sell on strength.
Here are the profiles for the four semiconductors that are in the semiconductor index:
Advanced Micro Devices
($3.80) traded to a 2013 high at $4.65 on July 18 then traded as low as $3.25 on Sept. 4 and is now above its 50-day SMA at $3.74. My weekly value level is $3.53 with a monthly risky level at $4.01.
($7.49) is the hold rated stock in today's table. The stock set a 2013 high at $8.40 on June 4 and is now below its 50-day SMA at $7.62. My annual value level is $5.56 with a weekly pivot at $7.49 and monthly risky level at $7.80.
($7.81) set a 2013 high at $8.08 on Sept. 12 and tested its 50-day SMA at $7.69 on Tuesday. My annual value level is $7.34 with a weekly pivot at $7.74 and semiannual risky level at $8.19.
($7.41) set a 2013 high at $8.73 on June 4 then traded as low as $7.16 on Aug. 16 and is currently below its 50-day SMA at $7.60. My weekly value level is $6.81 with an annual risky level at $7.60.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined
in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs
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